Question

Explain the different Types of bank accounts

Answer 1

The two most popular types of bank accounts are checking accounts and savings accounts. Each functions differently and serves a different purpose.

Checking accounts are the most accessible type of bank account, allowing you to deposit and withdraw money as often as you want. Most checking accounts come with debit cards, which you can use to make purchases and withdraw money from ATMs, as well as paper checks. In addition, most allow you to pay bills electronically. Only some checking accounts earn interest, and many charge fees for maintenance, ATM withdrawals and minimum balance violations. Comparing options can help you find a checking account with the lowest fees and best terms for your situation.

Savings accounts allow you earn interest on your deposits, and are good tools for emergency funds or for keeping money you otherwise don’t want to spend right away. They don’t come with debit cards, and there is usually a limit to the number of withdrawals you can make per month. Savings accounts differ in interest rates, method of compounding interest, service fees and minimum opening deposits, so search for the one that’s right for the amount of money you plan to save and how you intend to use the account.

Answer 2

Answer:

A bank account is the facility provided that allows to deposit the funds and withdraw them as per need, also provide interest .

There are mainly four types of account -

1 - Current Account - These accounts are mainly owned by business firms or enterprises. The money with these accounts is liquid cash. There can be as many transactions through this account. No interest is paid on the sum of money in this account.

2 - Saving Account - Saving account as its name says this account holding money. This account can be owned by a working-class, pensioners or the students. The rate of interest in these accounts lies between 4% to 6% in India.

3 - Fixed deposit Account - This account works with a certain sum of the money. The amount of money is deposited and withdrawal at once. A fixed deposit account works with the time specification and the money can be withdrawn before it.

4 - Recurring Deposit Account - Here, a certain amount of money is deposited for a certain period of the time. This account pays off the high rates of interest. This account helps with regular saving. The total of money withdrawn after a time is the increment amount.